Stocklooker 4/14/11

April 17, 2011 · comment

written by Henry

MARKETS

This may sound wishy washy, but short-term we have to go both higher and lower (duh). The best (easiest to trade) scenario would be for the markets (especially Oil) to open higher on Monday – I would then sell short Oil stocks and the broad market. The reason this is the easier trade is because the downside risk is much greater than the upside reward in the near term. If the markets open lower Monday, I will look to buy the stronger groups, like Biotech or the Rare Earth Metal stocks (assuming they opened lower also), then day-trade those and after a bounce go flat again.

Regarding the hoopla over the debt ceiling needing to be raised – of course the politicians are just posturing – they will raise the debt ceiling soon because of the threats by our Treasury and un-Federal Reserve (private bankers) to cause a stock market crash. Our Government is owned and infiltrated by Wall Street – so don’t expect any change to occur. If anything, more laws that will put more money into the Banker’s pockets for “the little sheeple’s best interest.” At least 2 Presidents (Lincoln, Kennedy) and several judges have tried to buck the system (pun intended) and they paid the highest price. So given a choice between 5M in a swiss bank account (how is that Swiss Tax Evasion lawsuit going by the way, which involves 50,000 American accounts?) or face being whacked, the Con-gress will raise the ceiling so we can pay more interest to the Banksters.

Strategy for Monday:

Higher opening – I am selling short the index (I can also buy BGZ, DXD, TWM, or SPXU, SDS, etc), and Oils when XLE ($77.20) hits $78ish. Lower opening – I will buy Biotechs or Rare Earth Metals if they also open lower – sell the bounce, then possibly sell short the markets. I plan to sell short the SP500 when SPY ($132.05) nears $132.50.

INDUSTRY OBSERVATIONS

Oil stocks are rallying back to the unfilled price gaps from April 11, and they should head higher if you believe inflation is unstoppable. But for right now, the charts are negative, and indicate lower prices over the next few months.

Biotechnology/Pharma/Drugs/Medical industries still look good, like GNOM, BLTI, AMRN, SWSH, etc.

Metals: I noticed another disconnect this past week between paper metal (silver/gold) and the physical metals. I favor the physical metals, and have stated such for 3 years. The paper/digital metal can disappear overnight. But metals are definitely overbought – but not from a valuation standpoint – just a technical standpoint.

HOTSTOCKS


Tight Bases: TYC, PRMW

Silver/Gold/Rare Earth Metals: MCP, REE, AVL, SHZ, PSLV, PHYS, MGH, MDW, GPL

BlueChips: KFT, BMY

Biotech/Pharma: SYMX, SWSH, BLTI, GNOM,

Miscellaneous: OCZ; ADAT; CIDM, GA, DCIX, REDF; DUG (shorts Oil stocks); QID (shorts the QQQ);

POTENTIAL SHORTS

Watching all oils as they near resistance: XLE; NOV; RDC; PXD; COP; LINE; APC; STR

 

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